Control Policies and Procedures

Name:
Department:
Form:  Financial Reporting Cycle           Fiscal Year-End: 2006


A. Control Activities / Information and Communication
Yes N/A No
1. Is there a formal plan of organization under which responsibilities for closing the general statements and financial statement worksheets are clearly defined?
2. Is there a formal schedule with target dates for completing tasks associated with closing the general ledger and preparing financial statement worksheets?
3. Are policies and procedures established concerning year-end cut-off of accounting transactions?
4. Does the agency maintain documentation of written procedures covering the recording of transactions ?
5. Does this documentation contain a chart of accounts explaining what items are charged to each line account?  Do relevant employees have access to this information?
6. Does the agency maintain and follow procedures for record filing, retention, and disposition?
7. Is it required that trial balances, adjustments and supporting workpapers be maintained to support the process of closing the general ledger and preparing financial statements and financial statement worksheets?
8. Is certification required from operating units that information submitted for the preparation of the financial statements is correct?
9. Is informative disclosure required in the financial statements and the accompanying notes as follows:
a. Requiring the accumulation of information concerning commitments?
b. Requiring the accumulation of information concerning contingencies?
c. Requiring the accumulation of information concerning related party transactions?
d. Requiring the accumulation of information concerning accounting principles?
e. Requiring the accumulation of information concerning fund classifications?
f. Requiring the accumulation of information concerning subsequent events?
g. Requiring the accumulation of information concerning other accounting disclosures? (CAFR footnote worksheets for the State reporting entity.)
10. Are investments reconciled to control accounts at year-end?
11. Are intra-agency transfers reconciled at year-end?
12. Are intra-agency interfund receivables and payables reconciled at year-end?
13. Are amounts designated for subsequent years' expenditure reconciled to budget authorizations?
14. Are beginning fund balances or retained earnings reconciled to amounts reported in prior years?
15. Are financial statements (or financial statement worksheets) reconciled to the general ledger before being transmitted to the State Controller?
16. Are financial statements (or financial statement worksheets) reviewed by the chief financial officer for accuracy and consistency?
17. Are the following duties generally performed by different people:
a. Preparing and reviewing the financial statements?
b. Preparing and reviewing journal entries?
c. Accumulation of accounting information (inventories, estimates, etc.) and custody of related assets?
d. Preparing and reviewing worksheets and schedules supporting the accounting information?
e. Performing and reviewing reconciliations?
18. Are worksheets and schedules attached to journal entry accounting code sheets and are they secured in a safe location?
19. Do only authorized persons review departmental budgets?
20. Is a knowledgeable individual assigned the responsibility to supervise the conversion from budget (cash) basis to GAAP basis of accounting?
21. Are reconciliations of subsidiary ledgers to control accounts performed and reviewed by a responsible person?
22. Are journal entries approved, including a review of supporting documentation?
23. Are transactions subsequent to the balance sheet date reviewed for proper classification?
24. Are revenue accounts reviewed to identify possible deferred revenue?
25. Are investment earning calculations and accruals reviewed at year-end?
26. Are fiscal agent statements reviewed for proper presentation and reconciled to the agency's records?
27. Are accumulated leave records reviewed at year-end?
28. Are capital asset inventory worksheets reviewed at year-end?
29. Are accrual transactions reviewed to determine that expenditure or revenue recognition was proper?
30. Are retained earnings or fund balances reviewed for restrictions/reservations at year-end?
31. Are bank reconciliations reviewed at year-end?
32. Are fund types reviewed to verify fund classifications?
33. Is the mathematical accuracy of the financial statements verified at year-end?
Comments for section A. (please specify question number)
B. Monitoring
Yes N/A No
34. Are overexpenditures and other differences between actual and budgeted amounts promptly investigated and resolved? 
35. Has management identified accounts, such as those requiring complex calculations or accounting estimates, which are especially at risk of misstatement and developed policies and procedures to address those risks timely?
36. Does management consider the financial reporting impact of changes in computer programs?
37. Has management instituted a process to identify and address changes in accounting and reporting procurements?
38. Are only authorized persons allowed to alter or interpret an existing accounting principle or establish a new accounting principle?  Have proposed changes been brought to the attention of OSC?  (Relates also to question 46)
39. Does management spot-check transactions, records, and reconciliation to ensure expectations are met?
40. Are policies and procedures developed for changes in new systems or new ways of doing duties?
41. Are budgets compared to actual results and deviations followed up on a timely basis?
42. Is information (i.e. findings, recommendations, etc.) provided by external auditors considered and acted upon in a timely manner?
43. Are internal controls subject to formal and continuous internal assessment process?
44. Does management periodically evaluate the accuracy and timeliness of its information and communicate it to appropriate personnel?
45. Does management review accounting estimates at least annually (depreciation, allowance for doubtful accounts, etc.)?
Comments for section B. (please specify question number)
C. Accounting Standards
Yes N/A No
46. Have qualified individuals reviewed recently promulgated accounting standards for proper implementation?  This would include, where applicable, GASB Statement No. 40 and other significant standards.  (Relates also to question 38)
Comments for section C. (please specify question number)